How to get cash for your structured settlement 

Thinking about getting cash for your structured settlement? Don’t let the prospect of a one-time, big-time cash payment blind you to all the factors that have to be carefully considered before entering into this kind of transaction.  

Although it may not look it (since it’s spread out over a long period), you’re essentially selling off a huge amount of money. Naturally, there may be companies or individuals looking to take advantage of your need for a big amount of cash, fast. The importance of being careful and prudent in this kind of transaction can’t be emphasized enough!

Here’s a list of things you should find out when before getting cash for your structured settlement.

About the buyer

The number of companies offering cash payment for structured settlements is growing. Although a company’s promise of “fast” or “big” cash can instantly attract you to sell your structured settlement for cash, first do some investigative work to safeguard yourself. Schedule a meeting with the company’s broker and get a feel for the broker and the company. Here, your intuition and gut feel should be trusted. If something is too good to be true, it probably is.

In addition to pure gut feel, contact your local Department of Consumer affairs to see if any lawsuits are pending or have been filed against the company. Make sure that the company is backed by substantial and legitimate funding so that you will receive your due payment after singing over your annuities. Also ensure that the company is ethical and efficient, and that it won’t try to lash back at you if they later encounter any difficulties obtaining your settlement payouts. 

About the broker

Find out how long the broker handling your transaction has been in the industry. Not just any industry—specifically, in the business of selling or brokering structured settlements. The industry, and indeed the transaction itself, is complex by nature. Mistakes made by an inexperienced broker could cost you big time. A broker with a solid track record and... .

About the cost

Companies promising you bucketloads of cash for your structured settlement? Add up all the remaining payments on your structured settlement. Realistically, the cash payout you’ll be getting for the sale will be much, much lower than that. That’s why selling a structured settlement is not the best option for those requiring—and expecting—a large amount of money. At any rate, if you do decide to take this option, do ensure that you are getting the wholesale price for your annuity.

About the time it will take

Any company or buyer that tells you that you can get your money in a matter of days is out and out lying! The sale of a structured settlement can take up to 90 days (several months) or even longer. This is mainly because a court order is required in all states for the sale of a structured settlement. This is to ensure that the seller is protected all throughout the transaction. You’ll also want to take time to shop around and compare the offer you received to that of other companies. And of course, there is the requisite paperwork that goes with selling your structured settlement.

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